Assemblin Q4 2019
Today´s presenters
Mats Johansson
President and CEO, Assemblin
Philip Carlsson
Assemblin is a complete Nordic installation and service partner
Excellence in many areas of technology Strong local presence in 100 Nordic locations Financial performance, FY 2019
• Electrical • Heating and sanitation • Ventilation • Automation • Data and telecom • Security • Industrial pipes • District heating • Cooling • Sprinklers • Electrical workshop and field service
NET SALES SEK 10 bn EMPLOYEES 5,900 Adj. EBITA-MARGIN 5.2% CASH CONVERSION > 100
SALES PER BUSINESS AREA
Sweden El 41 % Sweden VS 26 % Sweden Ventilation 14 % Norway 13 %
Finland 6 %
SALES PER TYPE OF ASIGNMENT
Service 38% Projects 62%
0,0 1,0 2,0 3,0 4,0 5,0 6,0 0 2 000 4 000 6 000 8 000 10 000 12 000 2016 2017 2018 2019
Net sales, SEKm Adjusted EBITA margin, %
Key highlights Q4 2019:
”A strong end to a good year”
FINANCIAL HIGHLIGHTS
• Net sales SEK 2,856 m
- organic growth 5.7 %
• Order intake SEK 2,607 m
• Adj EBITA SEK 204 m
• Adj EBITA margin 7.2 %
• Strong cash conversion
OPERATIONAL HIGHLIGHTS
• Accelerated Profitability Programme
implemented
• M&A: H&S companies in Norway (Arve
Hagend AS, Ramsoy AS and Gjorvik V&S
AS), net sales tot. SEK 260 m
• Improved corporate governance
framework to meet IPO-requirements
• Launch of the EUR 250 m senior
secured floating rate notes
+10.0%
+51.7% +2.0 pp
Group development
Net sales and adjusted EBITA margin
0 2 000 4 000 6 000 8 000 10 000 12 000 Q4 2018 Q4 2019 FY 2018 FY 2019 0 100 200 300 400 500 600 Q4 2018 Q4 2019 FY 2018 FY 2019
SALES SEKm / GROWTH % ADJ EBITA SEKm / ADJ EBITA MARGIN % Key highlights in Q4
• Strong organic growth trend throughout 2019 with an increasing service share
• More emphasis on acquisitive growth in Q4
• Margin increase in Q4 driven by overall margin expansion and positive effects from the accelerated profitability programme +10.0% +12.3% 7.2% 5.2% 4.5% 5.2% COMMENTS
Group development
Order momentum
• Order intake in the fourth quarter in line with last year • The order intake growth for the
full year is supported by continued strong markets in 2019 as well as two large orders in Q1 and Q3 respectively
• Order backlog includes a very limited service share despite service growing more rapidly than projects
ORDER INTAKE SEKm / GROWTH % ORDER BACKLOG SEKm / GROWTH % COMMENTS
0 2 000 4 000 6 000 8 000 10 000 12 000 Q4 2018 Q4 2019 FY 2018 FY 2019 -2.9% 19.0% 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 2018 2019 21.6%
ASSEMBLIN EL • Strong organic growth and Q4 margin improv-ement • Market outlook healthy ASSEMBLIN VS
• Growth both org-anic and by acquired with significant Q4 margin improvement • Market outlook healthy ASSEMBLIN FINLAND
• Growth with flat margins and stable market
• Focus on internal stability
Business area development
ASSEMBLIN VENT.
• Flat organic growth for the full year due to delays in large projects in fourth quarter • Market outlook healthy ASSEMBLIN NORWAY • Growth both organic and acquired with margins growing after Q1 write-downs • Strong market Q4 2019 FY 2019 Q4 2019 FY 2019 Q4 2019 FY 2019 Q4 2019 FY 2019 Q4 2019 FY 2019
Net sales, SEK m 1,215 4,146 730 2,629 368 1,367 381 1,285 180 598
Growth, % 17.3 15.5 15.3 10.5 -7.9 3.9 7.8 19.8 7.5 10.8
Adj EBITA, SEK m 94 222 50 139 37 73 26 70 7 12
Adj EBITA margin, % 7.8 5.4 6.9 5.3 10.0 5.3 6.8 5.4 3.9 1.9
FTE 2,827 2,796 1,512 1,508 543 544 648 704 362 357
41% 26% 14% 13% 6%
Pro forma adjusted EBITDA bridge
• Reported EBITDA is adjusted to exclude the effect of
implementing IFRS16
• Items affecting comparability discussed on next slide
• Pro forma acquisition adjustments reflects an estimate of the full twelve-month impact of acquisitions completed prior to Dec 2019 • The full year effect of the
accelerated profitability
programme is SEK 65 million
3.7x
COMMENTS Consolidated net leverage ratio 153 513 246 606 33 65 704 0 100 200 300 400 500 600 700 800 EBITDA -Reported Lease accounting adjustments (IFRS 16) Items Affecting Comparability EBITDA excluding items affecting comparability EBITDA -Proforma Acquisition adjustments EBITDA -Proforma Operational improvement program Pro forma Adjusted EBITDAItems affecting comparability
Items Affecting Comparability Breakdown
Full Year 2019 Items Affecting Comparability YTD Q3 31
APP - initial estimate 127
APP - additional branch closures 15
APP - overrun 21
Fees - refinancing 31
IPO readiness 12
Acquisition and new branch costs Q4 9
Total Items Affecting Comparability 2019 246
• The total cost of the accelerated
profitability programme in Q4 was SEK 163 million
Exceeding our initial estimate by SEK 36 million due to additional branch closures as well as higher costs than initially projected of SEK 21 million
• Costs for issuance of senior secured notes amounted to SEK 31 million.
• IPO readiness activities mainly related to strengthening the internal control environment to equity-listing standards cost SEK 12 million.
Cash flow and net debt
• Free cash flow seasonally strong in fourth quarter
• Full year cash conversion (free cash flow over adjusted EBITA) is 101%
• Consolidated leverage
decreasing from 4.3x LTM Q3-2019 to 3.7x due to strong cash flow and increasing EBITDA
COMMENTS
SEK m Q4 2019 FY 2019
Adjusted EBITDA 228 606
Change to NWC adj for non cash
items 235 37
Net Capex, incl vehicle leasing capex -33 -120
Free Cash Flow 430 523
Cash conversion (FCF / Adj. EBITA) 210% 101%
Dec 2019
Consolidated net lev 2,590
Pro forma Adjusted EBITDA 704
To conclude:
A strong end to a good year
• Continued stable markets, especially
in Sweden and Norway
• Increased market share driven by
strong organic growth, especially
within service
• Record high order backlog with a
steady stream of small/mid projects
and service assignments plus a
couple of large projects
• Successfully concluded accelerated
profitabity programme supports
competiveness and further margin
expansion
We use air, energy and water to make
buildings work and make people feel
comfortable. That is our mission and
our driving force in all our assignments
– big and small.
Assemblin. So that everyday life
can run smoothly.
Our expertise and our commitment are our strengths
• High technical skills
• Geographical diversification – close to our customers
• Coordination of installations
• From design and installation to service • 5,900 dedicated employees
Specialist staff delivering value-added technical installation and
service
Execution excellence
delivered by local branch managers and specialist staff
Solid deleveraging prospects
Experienced management team partnering up with a supportive
shareholder
Top 3 Nordic player
focused on regional leadership
High sales visibility
from Project backlog and recurring Services
Resilient and agile business model
Resilient and agile
business model
Solid deleveraging
prospects
Experienced management team
leading a value-oriented business
Established track-record
of improving margin and FCF
1 2 7 3 4 5 6